US names India among 40 nations in crackdown on Chinese tariff evasion

The United States has identified over 40 nations, including India, as part of a covert system enabling Chinese goods to evade steep American tariffs, according to a report titled "The Great Transshipment Scam." This shadow network, described by top trade adviser Peter Navarro, allowed China to transfer exports through multiple countries, altering labels and shipping routes to conceal the origin.

The value of goods rerouted between nations annually is estimated between $40 billion and $303 billion. Navarro highlighted India's Pune-Gujarat-Chennai manufacturing hub, which processes goods destined for the US. Washington intends to deploy an AI tool called "Detective Border" to detect and address such shipments by analyzing shipment data, shipping patterns, product classifications, ownership links, production capacity, and even visual inspections.

The goal is to distinguish legitimate trade from illegal pass-through schemes, allowing for enforcement actions such as levying duties, imposing penalties, and issuing exclusion orders.